Do you know that the income taxes you pay to the state of Iowa makes up the majority of the General Fund budget? Iowa’s General Fund is supported not just by income taxes, but also sales and a variety of other taxes, fees, and revenue sources. In addition, the budget is supported by taxes paid to the federal government. In […]
Iowa’s economy is in a recession marked by high unemployment, not seen since the Great Depression of the 1930s. Iowa’s economic crisis is a result of the coronavirus (COVID-19), which has forced an economic shutdown of the state. Low commodity prices are also having a detrimental impact on the farming industry in our state. Ernie Goss, PhD, who serves as […]
David Kennedy, prominent historian and Stanford University professor, in an interview with Governing discussed the COVID-19 (coronavirus) emergency in relation to the Great Depression. In that interview he stated, “[President] Calvin Coolidge said that if the federal government went out of business, the average person wouldn’t notice for six months, except for the post office. Now, the federal government is twice the size of the states all put together.” […]
The United States is confronted by an unprecedented crisis with the coronavirus (COVID-19) pandemic. From an economic standpoint, the COVID-19 crisis is being compared to the Great Depression with the growing army of unemployed Americans and the possible historic loss in state and local tax revenues. In March, Iowa along with other states, closed the economy except for essential businesses […]
Executive Summary As of April 24, the CDC calculates that COVID-19 has generated 24,555 U.S. deaths and 48 Iowa casualties. Per 1,000,000 in population, this represents 75 deaths for the nation and a much lower 15 for Iowa. Due to COVID-19, the U.S. economy contracted by 4.8% in Q1, 2020, and Iowa’s economy experienced significant hardships. Highest level […]
The High Cost of Economic Development Incentives as a Tool for COVID-19 Recovery Overview: The last sustained period of economic downturn in the United States saw explosive growth in the size and scope of state and municipal tax credit and abatement programs, subsidies, grants and other forms of economic development incentives. With the benefit of hindsight and new research […]
In an attempt to slow the spread of the coronavirus (COVID-19) the national economy is closed, which is resulting in millions of people unemployed and businesses wondering if they will survive. Shelter-in-place and social distancing policies are working to slow the spread of COVID-19, but the longer the economy remains closed the greater the damage will be. There is great […]
The coronavirus (COVID-19) is impacting Iowa’s entire economy. Social distancing, meant to slow the spread of the virus, has resulted in business closures and vast numbers of Iowans forced into unemployment. It is also impacting Iowa’s agricultural economy. A new study by the Center for Agricultural and Rural Development at Iowa State University estimates that COVID-19 could impact agriculture in […]
The coronavirus (COVID-19) is frightening enough, but the economic consequences of the virus makes the situation even more terrifying. As a result of COVID-19, thousands of Iowans are filing for unemployment and businesses across the state are trying to fend off bankruptcy. The current “cure” or deterrent to stopping the spread of the virus is social distancing and shelter-in-place policies, […]
The threat of a national economic recession hangs over the United States as a result of the health emergency caused by the COVID-19 (coronavirus) pandemic. While much attention has been paid to what lawmakers in Washington D.C. have done, states and localities are also bracing for an economic recession. A month ago, Iowa’s economy was in a strong position with […]
In our current situation, prudence is the best fiscal policy. The economic impact of COVID-19 or the coronavirus is still uncertain. This national health emergency has resulted in business closures, unstable markets, and uncertainty as to when Americans can return to normalcy. Prior to COVID-19, the national economy, as well as Iowa’s, were both doing well; now fears […]
Iowa’s top 12 percent corporate income tax is the highest in the nation. In 2018 the Iowa legislature passed a comprehensive tax reform law and the top rate will be lowered to 9.8 percent in 2021. Even at 9.8 percent, Iowa will still have a high corporate income tax rate. When it comes to tax policy it appears to be […]
Tax credits and incentives are often an enticing siren song that lures state and local policymakers. Both are seen as not only necessary for economic growth, but also to help solve a variety of policy problems. Whether at a state or local level, tax credits and incentives often fail to deliver on the intended economic growth. They often create a […]
One state is trying to dig itself out of a hole… by digging deeper. Connecticut, just as with other progressive Blue States such as Illinois and California, is in a fiscal crisis. Policymakers in Connecticut have relied on increasing taxes and spending. “After eight years of uncontrolled spending and two of the largest tax increases in the history of […]
People vote with their feet. Iowa’s population and economic growth requires lowering income tax rates and controlling spending. There is clear evidence states that reduce tax rates and control spending not only grow economically but attract new residents. Tax rates matter and the more a government taxes something the less you get. High taxes not only discourage investment, entrepreneurship, […]
The Iowa legislature is already making progress in creating a more friendly economic environment for job creators by passing needed tax reform legislation. The tax reform bill signed into law by Governor Kim Reynolds begins the process of reducing Iowa’s high individual and corporate tax rates. In addition, this legislation also calls for a strenuous review of Iowa’s many business […]